There is lots of News, there always has been. Our problem used to be, that it was hard to get the News, or find the News.
Today, it is the opposite.
We have way too much News… News we want and News we don’t want.
Accurate news, fake news, rehashed news, serious news, entertaining news, political news, agenda derived news, personal news and lame news.
All of it is OLD NEWS.
Think about it; News is only created (unless fake) when something ‘newsworthy’ has already happened.
Definition of NEWS:
“newly received or noteworthy information, especially about recent events“
Therefore, News by definition, is out of date by the time it is reported or recorded.
You are probably thinking, who cares, and how else do we ever find anything out unless it has happened?
Yep correct, I don’t care about that.
What I care about is;
People making large financial decisions based on the 6pm News.
Often I have a random person call up and look to use our services. This might involve buying a property in a location they have provided.
When asked how they come up with that location, the answer is usually;
“I saw on the News that the area is performing well, so I think we should buy there.”
Of course, I encourage them in my usual fashion, with a pearl of wisdom like:
If it is in the News, it’s already too late!
There is usually silence on the other end of the phone, or screen.
“So where should I buy then?”
Perhaps somewhere that is not paraded around on the TV for all to see, with overcooked prices due to the extreme interest…
Betting against the News
This week I was talking to a good friend who, amongst other things, dabbles in the stock market. In past chats, he had been talking about a share market crash for many months now and yet this discussion was different.
He says to me that everyone is talking about a crash..
“So surely then, it can’t crash due to everyone being prepared.
If that is the case, then I am going to bet against the trend and set up for a bull market.”
(I am not a shares guy, so please understand I am not commenting on the activity of the stock market.)
I did find my mates observation very timely, and usually accurate. Much has been said about being counter-cyclical in both the property and shares arenas, like the iconic quote by Warrant Buffet;
‘Be fearful when others are greedy and be greedy when others are fearful.’
This brings me back to the News.
As humans, we have a tendency to act on circumstance or suggestion, and this applies to News.
Forget the News
Not only is it agenda driven at best or totally fake at worst, it is not what you need to be looking at for your decisions.
Data, Trends, and Sentiment
These three things are connected and form a complete self-fulfilling cycle.
· Data is the record of transactions / actions happening.
· Trends are the amalgamation of the data into usable metrics.
· Sentiment is the ‘feeling’ of the market and can be based upon the trends that people are seeing or experiencing.
· Data then changes, due to the sentiment driving the actions.
And it keeps repeating.
It makes little to no difference to you, what the News report says about one of these points. They never have or will, provide the full picture, only what sells advertising.
Making your decisions using Data, Trends and Sentiment will supply you with far superior results than if you listen to the 6pm News.
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Since 2004, Scotty North has been helping people buy the best properties for their needs at prices that simply speak for themselves.
Scotty has been instrumental in bridging the gap between financial planning and traditional real estate transactions through his property advice model.
Scotty North is a Qualified Property Investment Advisor (QPIA), with accreditation’s in financial planning, mortgage broking and real estate.
By carefully considering his clients’ goals and planning for market changes via demographics and trends, Scotty designs a future proof outcome not only specific to the client’s needs but dynamic in its execution with performance indicators and exit strategies built in.